BOC's Macklem: Front-loaded tightening cycles tend to be followed by soft landings

• Front-loading rate increases now helps avoid need for even higher rates down the road
• 100 bps hike is very unusual and reflects unusual economic circumstances of inflation at nearly 8%
• Strain of higher rates in short term will 'get us to the other side of this difficult period and back to normal'
• How high rates need to go will depend on economy
• We are projecting a soft landing but path to that has narrowed because of elevated and persistent inflation
• High inflation argues for getting to the high end of neutral or just above it
• Inflation is broadening because the Canadian economy is in excess demand
• Employers can't find enough workers and they're increasing wages to find them

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